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WWIL is looking at a debt-equity ratio of 1:1. "The net worth of the company
currently is not that strong to support that sort of debt. We would like a 1:1
debt-equity ratio," Garg says. Operating
revenues from ZTL's cable line of business stood at Rs 1.5 billion for the fiscal
ended 31 March 2006 while net profit was at Rs 7 million.
For Dish TV,
the DTH outfit, there is a Rs 2.5 billion investmen plan over the next two years.
The net expenses for DTH operations thus far is Rs 3.8 billion, says Garg. "We
project a gross revenue of Rs 3.2 billion from our DTH business in FY07. We aim
to have 2.4 million DTH subscribers in the fiscal while the average revenue per
user (ARPU) should go up from Rs 190 to Rs 250 a month because of the launch of
value-added services," he adds. The
operating revenues for the DTH business stood at Rs 818 million in FY06. On the
back of subsidies and marketing expenses, the DTH operations incurred a loss of
Rs 790 million during this period. The
de-merged DTH and cable companies are likely to opt for an initial dilution of
up to 26 per cent to investors. They are open to both private equity and strategic
investors. | 
